schirallicpa

Client had put money in 529 years ago, with before tax money. Doesn't remember any benefit tax-wise for making contribution. Regardless, has taken money back out, but not for tuition. 1099Q shows a small loss. I'm finding info telling me to report this loss as misc item deduct, but I think that's only after the proceeds are used for tuition. Since it wasn't treated by the client for tuition, then does it get reported on Sch D as just an investment that lost a little money? Thanks.

Client is school librarian and takes trip to South Africa thru People to People. The trip included her touring various libraries and sharing with them how US libraries are managed. The trip did fulfill her 40 hours of professional ed credits. The trip cost her around $6500. I'm thinking, perhaps an allocation of the cost, at best. But this trip wasn't really ordinary and necessary. Can someone give me their thoughts. thanks.

ATX has continued to improve its product. On a NYS corp return you must indicate what state the corp is incorporated in. And if it is not NYS, you must indicate when you started doing business in NYS. (This I think is a new error popping up on NYS corp return.) Anyway - new client. doing business in NYS since 1997. The state of incorp is Delaware. They have a very small oil extraction outfit. I have no idea why they are incorp'd in DE. In fact, i don't think I have ever come across a corp in NY that wasn't incorporated in NY, so I had not stumbled across this before. There is a $300 fee for a "foreign" (non-nY) corp doing business in NY. Otherwise, the fee would be $25. But the $300 fee doesn't come up until I put in the date started business in NY. The thing is - they have always disclosed on the cT-3 that they were Delaware corp. And it is blantantly obvious in reviewing the return and 1099 that they are doing business here. They have never paid the $300 fee. In fact, last year, they inadvertantly paid $100, when they otherwise should have paid $25 (well - if a NY corp) and got a refund. So someone in Albany must have looked at something, but no one has noticed. my question? I don't know....I just don't want to tell them that they have to pay this. Let alone they should have been paying it all along, and maybe they should amend, or maybe they will get caught. Am I understanding this right? Any thoughts out there.

I'm just asking for quick clarification on EIC and dependency rules. If 2 people living together have mutual children, then I can split the children between the returns. As I understand, the person with the greater income would claim HOH. Also - my question - the person with the greater income takes all the kids as EIC kids, regardless of who takes them as dependent. Is that correct? Thank you for your help.

Hey - thanks! I appreciate your reply and your helpfulness. Some of the replies you get are not helpful at all, and really a chiding because you dared to ask. I just need some one elses opinion, and I thank you for yours!! Have a wonderful day....

The attorney didn't file the 2553. whats new. Why don't people just come to the accountants first? It is not legal work setting up a corp. Just let me do it. It's easier...... Anyway - I know I can file the 2553 with the 1120S in this first year "Filed pursuant to Rev Proc 2003-43" And it will fly. But does anyone know if NYS will take a late election? thanks again.

1374 being when we transfer assets to a corp tax free, presumably, there needs to be an attachment somewhere that says were electing this. I don't find on the handy elections form, but I'm wondering if there is some standard lingo that someone has contrived. Thanks for any input.

You guys are awesome. This is exactly what I was thinking, and you, especially, kcjenkins - are always so helpful. thank you!!

This is a new client. The previous tax preparer did not amortize the portion of the purchase price that was considered intangible "business" purchase - the agency's clients. I know there are times under GAAP when things like this just never get amortized, and are re-valued - if you will - if they decline in value. Whats the correct treatment on the tax return. Can anyone point me to "code". thanks!!

Agreed!

the big AH-HA! I had a link problem. No wonder it didn't seem to be working right...........

Oops - NP, PN.....Ok fresh eyes this morning may help. I see now how this works. Thank you! And thanks for everyone else for their input. I agree - I'd rather do the return based on the fact that there is gross income from a state, and then at least have some record of the activity. Good day!

My client is a full year NY resident, having moved from Col to NY in 2008. She is renting her former residence in Colardo, and is taking a loss on it. This would be her only Col source of income. I have attempted the NP form, and am coming up with a taxable amount (because it loads everything from the Fed return.) I'm not familiar with Col. Do they want non-res to file just to report a rental loss? Can we skip this one? If not - hmmmmm - how do I get the form to only look at Colorado income? Some state returns let you find a worksheet where you allocate Federal income as resident income or non-res income. Am I not finding such worksheet? Thanks in advance for any help.

Thank you everyone. I appreciate your help.

I am considering setting up a small website that would have some tax tips, loan calculators, links, stuff like that. Nothing too big. Websites that I have found so far that you can purchase set up, are far more than what I want. Does anyone have any recommendations?

I have 2 clients who have been selected for audit by NYS Dept of Labor. They have sent me a list which includes the kitchen sink! I would fully expect requests for payroll returns, check registers, and income tax returns, but these guys want corp documents and founding paperworks, sales records and sales tax returns, all ledgers, including sales, a/p, a/r, disbursements and general, contractor agreements, certs of insurance (ok, I can see that one), and even the poster for w/c!! What do they need all the sales info for? Can they go that far? And one of the audits is from inception! I'm not even sure when that was, and I doubt very seriously that they have records still around. This is a small proprietor trying to make a living. Not Madoff ponzi schemers. Any advise today would be appreciated.

AH-HA! my tired eyes weren't find it the other day. Thank you!

I have a client who has a NOL this year (2008) and I am electing to carryback (I think) hoping to get some tax money back for her. IN 2006 she paid AMT tax. Her income tax was 20K, her AMT was 3K, total tax was 23K. I plug in my regular carryback of NOL on line 21. It didn't do much good, because AMT just went up. So, I find my AMT NOL worksheet, and make sure its okay so I can carryback my AMT NOL. But how? On the 2006 6251 on the NOL line 11, it says to put the NOL from 1040 line 21. I don't see where the AMT NOL is used. Has anyone else monkeyed with this stuff before? I guess I've never had a NOL CB when there is AMT before. Thanks for any help.

yes, Maribeth. The employer bumped up his W-2 for the reimbursed tax. But I'm still on the fence here. Anyone else want to add their 2 cents today? Thanks!!

I have a guy that worked in Vietnam and had $28K of tax paid to Vietnam. On his W-2 they have included this figure as reimbursed to him, and have it included in his box 1 wages. So he is getting taxed on this on the 1040. Can he claim the $28K on Form 1116? (Obviously it doesn't sound quite right to take the credit for reimbursed tax. I'm just stuck on the fact that he also gets taxed on it in the US.) Hmmm......too many late night softball games with the girls and I can't think straight any more. Anyone else awake out there this afternoon? Thanks for the input!!

Thanks for your advice. I appreciate it!!

Maybe that's a really bad question. The thing is, we issued 1099s for an attorney group. You know how attorney's are at providing accounting info. So, in total, the 1099s are okay. Individually, they vary between the 5 attorneys, +/- $750 amoungst them. In the big picture, they will be annoyed that they have to amend individual tax returns for small amounts that will make negligible changes to their tax returns. On the other hand, the numbers they gave me were wrong and I know they haven't been properly reported. So - amend 1099s, (and I prepare 1 of the 5 1040s, so there's another 1040x for me) and listen to them moan. Or adjust their 2009 1099s for the give or take of 2008. I guess if the 1099s in total were wrong, and if any of them were at least over 1000 dollars wrong, I would just go ahead and amend 1099s. But, really, is it worth it? BTW I discovered this when preparing their corporate return. So, the corp return is reporting total comp correctly, regardless.

I agree. The basement is an intregal part of the house. It may be different if it was a garage, or non-attached building. But the basement is part of the house, and I would consider the entire basis of the house.

I used to work for a guy who's theory was the longer it took to get your return done, the more deductions you could come up with. It was also his theory - which I've heard this from a guy that worked at the IRS too - that the later in the season you filed your return, the least likely it was to be audited. The late ones get looked at less, because the IRS is wanting to clear their desks and get ready for the next season. I've never filed my return before Aug 15 ( I still shoot for the old deadline). Then any refund gets to go to fall school taxes. It's my forced savings for another necessary evil.

Now you'd think the guy could have gotten out of the car and helped you bring some of the stuff into the office. If you're going to sit there in the car that early in the morning and wait for me, make yourself useful! I lost a client last year because I was "late" getting in on a Sunday morning and he was here waiting for me while I was having breakfast with my family. How dare I! Take all the gifts you can get. I get about 2 a year. I have a teacher friend who complains about all the stuff she gets. Annoys the heck out of me. It's a rare client that appreciates what you do, the hours you didn't bill, or the time you gave up for him this time of year. At least when the late comers make their way in, I tend to charge them to the max. The early birds sometimes get adjustments. But the late people pay the full cost.